While Obama and Hillary tell us how great the economy is doing, as Sanders and the GOP say otherwise, evidence now surfaces that say the latter may be right. In a secret memo from the Fed to the banks, particularly JP Morgan/Chase, they use the words "catastrophic exposure to national security," of which none of which sounds good. The derivative exposure, which was supposed to be curtailed under Dodd/Frank, has instead exploded to more than half of the banks liability exposure, which if left unchecked could destroy not only our economy but the world's too. The problem is not with Dodd/Frank but corporate powers on both sides of the aisle that have conspired to water it down to nothing. All five major banks are mentioned which also all failed their stress tests recently. Citibank and JP Morgan all had huge downturns recently, although their stock went up because the news "wasn't as bad as they thought," even if the numbers were still pretty ugly. Those stock buybacks can only work for so long guys. And when that gravy train ends, so does the planet and everyone's money. As the FDIC is now tied to the banks derivative losses, if just one bank goes under, it could wipe out everyone's savings as the program goes bust.
Tack on to that a growing inventory as sales have collapsed over the last few months. When inventory stacks up, jobs get lost. Experts expect mass layoffs soon because of this, just like 2008-2009 all over again. No one is buying anything anymore as wages have stagnated to a point that no one has any money expect for bare essentials. Yet raising the minimum wage is out of the question for many. The end result, is we all lose if we don't drastically increase the amount of money being given to the lower classes.
Things look bleak people. Sorry for the sort post, but I have lots of work today. Be back soon.
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